Value-Based Fees, 3rd Edition

CHAPTER 10Fee Progression Strategies: Why You Fall Behind When You Stand Still

It's fascinating how we rigorously update our computer software, seek out the latest cell phone technology, and constantly improve our web sites and collateral, but tend to ignore our fee practices as if they were fossils best left undisturbed.

This chapter is intended to provide a holistic view of fees and when and how to raise them. We've been through the tactics, the rebuttals, the options, and the preparation. Now we're going to examine the process as an ongoing strategy. Although we'll start with early career planning to provide continuity—and this might appeal to newer consultants—it's difficult to engage in a comprehensive strategy early in one's career when putting food on the table seems more important than negotiating with a client. (In the early days, a closed deal of any kind is a successful negotiation!) I'm also anticipating that some sophisticated, mature, and successful people from other careers are reading this book as they enter the consulting profession and intend to use the successful practices of others.

I think it's critical for the successful consultant to view fees as part of a process that continues throughout one's career. For example, you don't raise fees when times are good and lower them when times are bad, any more than you would increase marketing when times are bad and abandon marketing when times are good. Successful consultants embrace and apply pervasive strategies, ...